Knowing When to Sell Your Stock

Knowing when to sell stocks is as difficult as knowing when to buy. This is one of the most difficult decisions that a stock trader has to make.

If you don't know when is the best time to sell your stocks, you should consult with a professional investment advisor. Following are the main reasons that you might want to sell a stock.

1) If the stock is not moving as hoped (e.g., growing slower than it has historically), you may need to sell the stock and reinvest in other stronger security.

2) You want to rebalance your portfolio by selling off some of your stocks and adjusting the mix to the asset allocation.

3) You might want to sell stocks and shares when you need some urgent cash to help you resolve whatever the problem may be.

4) Normally, investors sell stocks when they are over-valued and buy them back after the price goes down.

5) It is a signal to sell if the company loses its way to achieving long-term growth and profitability, maybe due to the loss of big customers.

* Next: Market Timing Strategy of Buying Stocks
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